The portion of lifetime expected credit losses that represent the expected credit losses that result from default events on a financial instrument that are possible within the 12 months after the reporting date.

The specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.

Profit or loss for a period before deducting tax expense.

The business or businesses that the acquirer obtains control of in a business combination.

The entity that obtains control of the acquiree.

The date on which the acquirer obtains control of the acquiree.

A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.

The changes in the present value of the defined benefit obligation resulting from:

The present value of the expected payments by a retirement benefit plan to existing and past employees, attributable to the service already rendered.

The adding together of assets, liabilities, equity, income or expenses that have shared characteristics and are included in the same classification.

The management by an entity of the biological transformation and harvest of biological assets for sale or for conversion into agricultural produce or into additional biological assets.

The harvested produce of the entity’s biological assets.

The systematic allocation of the depreciable amount of an asset over its useful life.

The amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount and, for financial assets adjusted for any loss allowance.

An increase in earnings per share or a reduction in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions.

A resource:

A present economic resource controlled by the entity as a result of past events.

The present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.

Assets (other than non‑transferable financial instruments issued by the reporting entity) that:

An entity, over which the investor has significant influence.

A living plant that:

A living animal or plant.

The processes of growth, degeneration, production, and procreation that cause qualitative or quantitative changes in a biological asset.

Interest and other costs that an entity incurs in connection with the borrowing of funds.

An integrated set of activities and assets that is capable of being conducted and managed for the purpose of providing goods or services to customers, generating investment income (such as dividends or interest) or generating other income from ordinary activities.

A transaction or other event in which an acquirer obtains control of one or more businesses. Transactions sometimes referred to as ‘true mergers’ or ‘mergers of equals’ are also business combinations as that term is used in IFRS 3.

The amount at which an asset is recognised after deducting any accumulated depreciation (amortisation) and accumulated impairment losses thereon.

The amount at which an asset is recognised in the statement of financial position.

The amount at which an asset, a liability or equity is recognised in the statement of financial position.

Cash on hand and demand deposits.

Short‑term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Inflows and outflows of cash and cash equivalents.

The smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

A share‑based payment transaction in which the entity acquires goods or services by incurring a liability to transfer cash or other assets to the supplier of those goods or services for amounts that are based on the price (or value) of equity instruments (including shares or share options) of the entity or another group entity.

An adjustment of the carrying amount of an asset or a liability, or the amount of the periodic consumption of an asset, that results from the assessment of the present status of, and expected future benefits and obligations associated with, assets and liabilities. Changes in accounting estimates result from new information or new developments and, accordingly, are not corrections of errors.

The sorting of assets, liabilities, equity, income or expenses on the basis of shared characteristics for presentation and disclosure purposes.

Those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity and include:

The spot exchange rate at the end of the reporting period.

Financial statements of a reporting entity that comprises two or more entities that are not all linked by a parent-subsidiary relationship.

The date on which a lessor makes an underlying asset available for use by a lessee.

Includes all employee benefits (as defined in IAS 19) including employee benefits to which IFRS 2 applies. Employee benefits are all forms of consideration paid, payable or provided by the entity, or on behalf of the entity, in exchange for services rendered to the entity. It also includes such consideration paid on behalf of a parent of the entity in respect of the entity. Compensation includes:

Operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity.

The financial statements of a group in which assets, liabilities, equity, income, expenses and cash flow of the parent and its subsidiaries are presented as those of a single economic entity.

Financial statements of a reporting entity that comprises both the parent and its subsidiaries.

An obligation that derives from an entity’s actions where:

A possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non‑occurrence of one or more uncertain future events not wholly within the control of the entity.

Usually, an obligation of the acquirer to transfer additional assets or equity interests to the former owners of an acquiree as part of the exchange for control of the acquiree if specified future events occur or conditions are met. However, contingent consideration also may give the acquirer the right to the return of previously transferred consideration if specified conditions are met.

Is:

An agreement to issue shares that is dependent on the satisfaction of specified conditions.

Ordinary shares issuable for little or no cash or other consideration upon the satisfaction of specified conditions in a contingent share agreement.

An agreement between two or more parties that creates enforceable rights and obligations.

An entity’s right to consideration in exchange for goods or services that the entity has transferred to a customer when that right is conditioned on something other than the passage of time (for example, the entity’s future performance).

An entity’s obligation to transfer goods or services to a customer for which the entity has received consideration (or the amount is due) from the customer.

The present ability to direct the use of the economic resource and obtain the economic benefits that may flow from it.

An investor controls an investee when the investor is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.

Assets other than goodwill that contribute to the future cash flows of both the cash generating unit under review and other cash generating units.

The amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction, or, when applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other IFRSs, eg IFRS 2.

A valuation technique that reflects the amount that would be required currently to replace the service capacity of an asset (often referred to as current replacement cost).

Incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense.

The incremental costs directly attributable to the disposal of an asset (or disposal group), excluding finance costs and income tax expense.

The rate that exactly discounts the estimated future cash payments or receipts through the expected life of the financial asset to the amortised cost of a financial asset that is a purchased or originated credit-impaired financial asset. When calculating the credit-adjusted effective interest rate, an entity shall estimate the expected cash flows by considering all contractual terms of the financial asset (for example, prepayment, extension, call and similar options) and expected credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate (see paragraphs B5.4.1⁠–⁠B5.4.3), transaction costs, and all other premiums or discounts. There is a presumption that the cash flows and the expected life of a group of similar financial instruments can be estimated reliably. However, in those rare cases when it is not possible to reliably estimate the cash flows or the remaining life of a financial instrument (or group of financial instruments), the entity shall use the contractual cash flows over the full contractual term of the financial instrument (or group of financial instruments).

A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired include observable data about the following events:

It may not be possible to identify a single discrete event—instead, the combined effect of several events may have caused financial assets to become credit-impaired.

The difference between all contractual cash flows that are due to an entity in accordance with the contract and all the cash flows that the entity expects to receive (ie all cash shortfalls), discounted at the original effective interest rate (or credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets). An entity shall estimate cash flows by considering all contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) through the expected life of that financial instrument. The cash flows that are considered shall include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. There is a presumption that the expected life of a financial instrument can be estimated reliably. However, in those rare cases when it is not possible to reliably estimate the expected life of a financial instrument, the entity shall use the remaining contractual term of the financial instrument.

The risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

Rating of credit risk based on the risk of a default occurring on the financial instrument.

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

An entity shall classify an asset as current when:

An entity shall classify all other assets as non‑current.

The increase in the present value of the defined benefit obligation resulting from employee service in the current period.

The amount of income taxes payable (recoverable) in respect of the taxable profit (tax loss) for a period.

A party that has contracted with an entity to obtain goods or services that are an output of the entity’s ordinary activities in exchange for consideration.

The beginning of the earliest period for which an entity presents full comparative information under IFRSs in its first IFRS financial statements.

An entity with decision‑making rights that is either a principal or an agent for other parties.

Temporary differences between the carrying amount of an asset or liability in the statement of financial position and its tax base that will result in amounts that are deductible in determining taxable profit (tax loss) of future periods when the carrying amount of the asset or liability is recovered or settled.

An amount used as a surrogate for cost or depreciated cost at a given date. Subsequent depreciation or amortisation assumes that the entity had initially recognised the asset or liability at the given date and that its cost was equal to the deemed cost.

The amounts of income taxes recoverable in future periods in respect of:

The amounts of income taxes payable in future periods in respect of taxable temporary differences.

The deficit or surplus is:

Post‑employment benefit plans other than defined contribution plans.

Retirement benefit plans under which amounts to be paid as retirement benefits are determined by reference to a formula usually based on employees’ earnings and/or years of service.

Post‑employment benefit plans under which an entity pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods.

Retirement benefit plans under which amounts to be paid as retirement benefits are determined by contributions to a fund together with investment earnings thereon.

The cost of an asset, or other amount substituted for cost (in the financial statements), less its residual value.

The systematic allocation of the depreciable amount of an asset over its useful life.

The removal of a previously recognised financial asset or financial liability from an entity’s statement of financial position.

The removal of all or part of a recognised asset or liability from an entity’s statement of financial position.

A financial instrument or other contract within the scope of IFRS 9 (see paragraph 2.1 of IFRS 9) with all three of the following characteristics:

The application of research findings or other knowledge to a plan or design for the production of new or substantially improved materials, devices, products, processes, systems or services before the start of commercial production or use.

A reduction in earnings per share or an increase in loss per share resulting from the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions.

A component of an entity that either has been disposed of or is classified as held for sale and:

A group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash‑generating unit to which goodwill has been allocated in accordance with the requirements of paragraphs 80⁠–⁠87 of IAS 36 or if it is an operation within such a cash generating unit.

Distributions of profits to holders of equity instruments in proportion to their holdings of a particular class of capital.

Either the period over which an asset is expected to be economically usable by one or more users or the number of production or similar units expected to be obtained from an asset by one or more users.

A right that has the potential to produce economic benefits.

The date when both parties agree to a lease modification.

The method that is used in the calculation of the amortised cost of a financial asset or a financial liability and in the allocation and recognition of the interest revenue or interest expense in profit or loss over the relevant period.

The rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of the financial asset or to the amortised cost of a financial liability. When calculating the effective interest rate, an entity shall estimate the expected cash flows by considering all the contractual terms of the financial instrument (for example, prepayment, extension, call and similar options) but shall not consider the expected credit losses. The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the effective interest rate (see paragraphs B5.4.1⁠–⁠B5.4.3 of IFRS 9), transaction costs, and all other premiums or discounts. There is a presumption that the cash flows and the expected life of a group of similar financial instruments can be estimated reliably. However, in those rare cases when it is not possible to reliably estimate (see paragraphs AG8⁠–⁠AG8B or IAS 39) the cash flows or the expected life of a financial instrument (or group of financial instruments), the entity shall use the contractual cash flows over the full contractual term of the financial instrument (or group of financial instruments).

All forms of consideration given by an entity in exchange for service rendered by employees or for the termination of employment.

Individuals who render personal services to the entity and either (a) the individuals are regarded as employees for legal or tax purposes, (b) the individuals work for the entity under its direction in the same way as individuals who are regarded as employees for legal or tax purposes, or (c) the services rendered are similar to those rendered by employees. For example, the term encompasses all management personnel, ie those persons having authority and responsibility for planning, directing and controlling the activities of the entity, including non‑executive directors.

A qualitative characteristic that makes useful information more useful. The enhancing qualitative characteristics are comparability, verifiability, timeliness and understandability.

The present value of the cash flows an entity expects to arise from the continuing use of an asset and from its disposal at the end of its useful life or expects to incur when settling a liability.

The price paid to acquire an asset or received to assume a liability in an exchange transaction.

The residual interest in the assets of the entity after deducting all its liabilities.

A claim on the residual interest in the assets of the entity after deducting all its liabilities.

A contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

The right (conditional or unconditional) to an equity instrument of the entity conferred by the entity on another party, under a share‑based payment arrangement.

In IFRS 3, is used broadly to mean ownership interests of investor‑owned entities and owner, member or participant interests of mutual entities.

A method of accounting whereby the investment is initially recognised at cost and adjusted thereafter for the post‑acquisition change in the investor’s share of the investee’s net assets. The investor’s profit or loss includes its share of the investee’s profit or loss and the investor’s other comprehensive income includes its share of the investee’s other comprehensive income.

A share‑based payment transaction in which the entity

Those events, favourable and unfavourable, that occur between the end of the reporting period and the date when the financial statements are authorised for issue. Two types of events can be identified:

The difference resulting from translating a given number of units of one currency into another currency at different exchange rates.

The ratio of exchange for two currencies.

A contract, or a portion of a contract, that is equally unperformed—neither party has fulfilled any of its obligations, or both parties have partially fulfilled their obligations to an equal extent.

Uncertainty about whether an asset or liability exists.

The price that would be received to sell an asset or paid to transfer a liability.

The probability‑weighted average (ie mean of the distribution) of possible future cash flows.

The weighted average of credit losses with the respective risks of a default occurring as the weights.

Decreases in assets, or increases in liabilities, that result in decreases in equity, other than those relating to distributions to holders of equity claims.

A difference between:

The effects of differences between previous actuarial assumptions and what has actually occurred.

Exploration and evaluation expenditures recognised as assets in accordance with the entity’s accounting policy.

Expenditures incurred by an entity in connection with the exploration for and evaluation of mineral resources before the technical feasibility and commercial viability of extracting a mineral resource are demonstrable.

The search for mineral resources, including minerals, oil, natural gas and similar non‑regenerative resources after the entity has obtained legal rights to explore in a specific area, as well as the determination of the technical feasibility and commercial viability of extracting the mineral resource.

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The amount for which an asset could be exchanged, a liability settled, or an equity instrument granted could be exchanged, between knowledgeable, willing parties in an arm’s length transaction.

For the purpose of applying the lessor accounting requirements in IFRS 16, the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

A lease that transfers substantially all the risks and rewards incidental to ownership of an underlying asset.

Any asset that is:

A contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.

Any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Any liability that is:

As an exception, an instrument that meets the definition of a financial liability is classified as an equity instrument if it has all the features and meets the conditions in paragraphs 16A and 16B or paragraphs 16C and 16D of IAS 32.

A financial liability that meets one of the following conditions:

The risk of a possible future change in one or more of a specified interest rate, financial instrument price, commodity price, currency exchange rate, index of prices or rates, credit rating or credit index or other variable, provided in the case of a non-financial variable that the variable is not specific to a party to the contract.

Activities that result in changes in the size and composition of the contributed equity and borrowings of the entity.

A binding agreement for the exchange of a specified quantity of resources at a specified price on a specified future date or dates.

An agreement with an unrelated party, binding on both parties and usually legally enforceable, that (a) specifies all significant terms, including the price and timing of the transactions, and (b) includes a disincentive for non‑performance that is sufficiently large to make performance highly probable.

The first annual financial statements in which an entity adopts International Financial Reporting Standards (IFRSs), by an explicit and unreserved statement of compliance with IFRSs.

The latest reporting period covered by an entity’s first IFRS financial statements.

An entity that presents its first IFRS financial statements.

Payments made by a lessee to a lessor for the right to use an underlying asset during the lease term, excluding variable lease payments.

An uncommitted but anticipated future transaction.

A currency other than the functional currency of the entity.

A transaction that is denominated in or requires settlement in a foreign currency.

An entity that is a subsidiary, associate, joint venture or branch of the reporting entity, the activities of which are based or conducted in a country or currency other than those of the reporting entity.

Loans which the lender undertakes to waive repayment of under certain prescribed conditions.

An explicit, unbiased and probability-weighted estimate (ie expected value) of the present value of the future cash outflows minus the present value of the future cash inflows that will arise as the entity fulfils insurance contracts, including a risk adjustment for non-financial risk.

The currency of the primary economic environment in which the entity operates.

A qualitative characteristic that financial information must possess to be useful to the primary users of general purpose financial reports. The fundamental qualitative characteristics are relevance and faithful representation.

The transfer of assets to an entity (the fund) separate from the employer’s entity to meet future obligations for the payment of retirement benefits.

A report that provides financial information about the reporting entity’s economic resources, claims against the entity and changes in those economic resources and claims that is useful to primary users in making decisions relating to providing resources to the entity.

Financial statements that are intended to meet the needs of users who are not in a position to require an entity to prepare reports tailored to their particular information needs.

A particular form of general purpose financial reports that provide information about the reporting entity’s assets, liabilities, equity, income and expenses.

An asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognised.

Government, government agencies and similar bodies whether local, national or international.

Action by government designed to provide an economic benefit specific to an entity or range of entities qualifying under certain criteria.

Assistance by government in the form of transfers of resources to an entity in return for past or future compliance with certain conditions relating to the operating activities of the entity. They exclude those forms of government assistance which cannot reasonably have a value placed upon them and transactions with government which cannot be distinguished from the normal trading transactions of the entity.

An entity that is controlled, jointly controlled or significantly influenced by a government.

The date at which the entity and another party (including an employee) agree to a share‑based payment arrangement, being when the entity and the counterparty have a shared understanding of the terms and conditions of the arrangement. At grant date the entity confers on the counterparty the right to cash, other assets, or equity instruments of the entity, provided the specified vesting conditions, if any, are met. If that agreement is subject to an approval process (for example, by shareholders), grant date is the date when that approval is obtained.

Government grants whose primary condition is that an entity qualifying for them should purchase, construct or otherwise acquire long‑term assets. Subsidiary conditions may also be attached restricting the type or location of the assets or the periods during which they are to be acquired or held.

Government grants other than those related to assets.

The amortised cost of a financial asset, before adjusting for any loss allowance.

The sum of:

A parent and its subsidiaries.

An aggregation of similar living animals or plants.

The detachment of produce from a biological asset or the cessation of a biological asset’s life processes.

The degree to which changes in the fair value or cash flows of the hedged item that are attributable to a hedged risk are offset by changes in the fair value or cash flows of the hedging instrument (see IAS 39 paragraphs AG105⁠–⁠AG113A).

The relationship between the quantity of the hedging instrument and the quantity of the hedged item in terms of their relative weighting.

An asset, liability, firm commitment, highly probable forecast transaction or net investment in a foreign operation that (a) exposes the entity to risk of changes in fair value or future cash flows and (b) is designated as being hedged (IAS 39 paragraphs 78⁠–⁠84 and AG98⁠–⁠AG101 elaborate on the definition of hedged items).

A designated derivative or (for a hedge of the risk of changes in foreign currency exchange rates only) a designated non‑derivative financial asset or non‑derivative financial liability whose fair value or cash flows are expected to offset changes in the fair value or cash flows of a designated hedged item (IAS 39 paragraphs 72⁠–⁠77 and AG94⁠–⁠AG97 elaborate on the definition of a hedging instrument).

A financial asset or financial liability that:

The use of a non‑financial asset by market participants that would maximise the value of the asset or the group of assets and liabilities (eg a business) within which the asset would be used.

Significantly more likely than probable.

Loss of purchasing power of money at such a rate that comparison of amounts from transactions and other events that have occurred at different times, even within the same accounting period, is misleading.

Hyperinflation is indicated by characteristics of the economic environment of a country which include, but are not limited to, the following:

An asset is identifiable if it either: 

Gains or losses that are recognised in profit or loss in accordance with paragraph 5.5.8 and that arise from applying the impairment requirements in Section 5.5.

The amount by which the carrying amount of an asset exceeds its recoverable amount.

Applying a requirement is impracticable when the entity cannot apply it after making every reasonable effort to do so.

The earlier of the date of a lease agreement and the date of commitment by the parties to the principal terms and conditions of the lease.

Increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in an increase in equity, other than those relating to contributions from equity participants.

Increases in assets, or decreases in liabilities, that result in increases in equity, other than those relating to contributions from holders of equity claims.

Valuation techniques that convert future amounts (eg cash flows or income and expenses) to a single current (eg discounted) amount. The fair value measurement is determined on the basis of the value indicated by current market expectations about those future amounts.

For the purpose of IFRS 12, income from a structured entity includes, but is not limited to, recurring and non‑recurring fees, interest, dividends, gains or losses on the remeasurement or derecognition of interests in structured entities and gains or losses from the transfer of assets and liabilities to the structured entity.

Incremental costs of obtaining a lease that would not have been incurred if the lease had not been obtained, except for such costs incurred by a manufacturer or dealer lessor in connection with a finance lease.

The assumptions that market participants would use when pricing the asset or liability, including assumptions about risk, such as the following:

Inputs may be observable or unobservable.

A contract under which one party (the issuer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder.

The following services that an entity provides to a policyholder of an insurance contract:

An insurance contract for which, at inception:

An insurance contract that is not an insurance contract with direct participation features.

Risk, other than financial risk, transferred from the holder of a contract to the issuer.

An uncertain future event covered by an insurance contract that creates insurance risk.

An identifiable non‑monetary asset without physical substance.

For the purpose of IFRS 12, an interest in another entity refers to contractual and non‑contractual involvement that exposes an entity to variability of returns from the performance of the other entity. An interest in another entity can be evidenced by, but is not limited to, the holding of equity or debt instruments as well as other forms of involvement such as the provision of funding, liquidity support, credit enhancement and guarantees. It includes the means by which an entity has control or joint control of, or significant influence over, another entity. An entity does not necessarily have an interest in another entity solely because of a typical customer supplier relationship.

Paragraphs B7⁠–⁠B9 of IFRS 12 provide further information about interests in other entities.

Paragraphs B55⁠–⁠B57 of IFRS 10 explain variability of returns.

The rate of interest that causes the present value of (a) the lease payments and (b) the unguaranteed residual value to equal the sum of (i) the fair value of the underlying asset and (ii) any initial direct costs of the lessor.

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

A financial report containing either a complete set of financial statements (as described in IAS 1) or a set of condensed financial statements (as described in IAS 34) for an interim period.

A financial reporting period shorter than a full financial year.

Standards and Interpretations issued by the International Accounting Standards Board. They comprise:

The difference between the fair value of the shares to which the counterparty has the (conditional or unconditional) right to subscribe or which it has the right to receive, and the price (if any) the counterparty is (or will be) required to pay for those shares. For example, a share option with an exercise price of CU15,4 on a share with a fair value of CU20, has an intrinsic value of CU5.

Assets:

Inventories encompass goods purchased and held for resale including, for example, merchandise purchased by a retailer and held for resale, or land and other property held for resale. Inventories also encompass finished goods produced, or work in progress being produced, by the entity and include materials and supplies awaiting use in the production process. Costs incurred to fulfil a contract with a customer that do not give rise to inventories (or assets within the scope of another Standard) are accounted for in accordance with IFRS 15 Revenue from Contracts with Customers.

The acquisition and disposal of long‑term assets and other investments not included in cash equivalents.

A financial instrument that provides a particular investor with the contractual right to receive, as a supplement to an amount not subject to the discretion of the issuer, additional amounts:

An entity that:

Property (land or a building—or part of a building—or both) held (by the owner or by the lessee as a right‑of‑use asset) to earn rentals or for capital appreciation or both, rather than for:

An arrangement of which two or more parties have joint control.

The contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

A joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement.

A party to a joint operation that has joint control of that joint operation.

A joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.

A party to a joint venture that has joint control of the joint venture.

Those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity.

A contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration.

Payments made by a lessor to a lessee associated with a lease, or the reimbursement or assumption by a lessor of costs of a lessee.

A change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the lease (for example, adding or terminating the right to use one or more underlying assets, or extending or shortening the contractual lease term).

Payments made by a lessee to a lessor relating to the right to use an underlying asset during the lease term, comprising the following:

For the lessee, lease payments also include amounts expected to be payable by the lessee under residual value guarantees. Lease payments do not include payments allocated to non-lease components of a contract, unless the lessee elects to combine non-lease components with a lease component and to account for them as a single lease component.

For the lessor, lease payments also include any residual value guarantees provided to the lessor by the lessee, a party related to the lessee or a third party unrelated to the lessor that is financially capable of discharging the obligations under the guarantee. Lease payments do not include payments allocated to non-lease components.

The non-cancellable period for which a lessee has the right to use an underlying asset, together with both:

An obligation that derives from:

An entity that obtains the right to use an underlying asset for a period of time in exchange for consideration.

The rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment.

An entity that provides the right to use an underlying asset for a period of time in exchange for consideration.

Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Unobservable inputs for the asset or liability.

A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

A present obligation of the entity to transfer an economic resource as a result of past events.

The expected credit losses that result from all possible default events over the expected life of a financial instrument.

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Financial liabilities other than short‑term trade payables on normal credit terms.

The allowance for expected credit losses on financial assets measured in accordance with paragraph 4.1.2, lease receivables and contract assets, the accumulated impairment amount for financial assets measured in accordance with paragraph 4.1.2A and the provision for expected credit losses on loan commitments and financial guarantee contracts.

A valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable (ie similar) assets, liabilities or a group of assets and liabilities, such as a business.

A performance condition upon which the exercise price, vesting or exercisability of an equity instrument depends that is related to the market price (or value) of the entity’s equity instruments (or the equity instruments of another entity in the same group), such as:

A market condition requires the counterparty to complete a specified period of service (ie a service condition); the service requirement can be explicit or implicit.

Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Buyers and sellers in the principal (or most advantageous) market for the asset or liability that have all of the following characteristics:

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.

Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial reports make on the basis of those reports, which provide financial information about a specific reporting entity. 

The result of applying a measurement basis to an asset or liability and related income and expenses.

An identified feature—for example, historical cost, fair value or fulfilment value—of an item being measured.

The date at which the fair value of the equity instruments granted is measured for the purposes of this IFRS. For transactions with employees and others providing similar services, the measurement date is grant date. For transactions with parties other than employees (and those providing similar services), the measurement date is the date the entity obtains the goods or the counterparty renders service.

Uncertainty that arises when monetary amounts in financial reports cannot be observed directly and must instead be estimated.

See ‘non‑controlling interest’.

The amount arising from adjusting the gross carrying amount of a financial asset to reflect the renegotiated or modified contractual cash flows. The entity recalculates the gross carrying amount of a financial asset as the present value of the estimated future cash payments or receipts through the expected life of the renegotiated or modified financial asset that are discounted at the financial asset’s original effective interest rate (or the original credit-adjusted effective interest rate for purchased or originated credit-impaired financial assets) or, when applicable, the revised effective interest rate calculated in accordance with paragraph 6.5.10. When estimating the expected cash flows of a financial asset, an entity shall consider all contractual terms of the financial asset (for example, prepayment, call and similar options) but shall not consider the expected credit losses, unless the financial asset is a purchased or originated credit-impaired financial asset, in which case an entity shall also consider the initial expected credit losses that were considered when calculating the original credit-adjusted effective interest rate.

Money held and assets to be received in fixed or determinable amounts of money.

Units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency.

Money held and items to be received or paid in money.

The market that maximises the amount that would be received to sell the asset or minimises the amount that would be paid to transfer the liability, after taking into account transaction costs and transport costs.

Defined contribution plans (other than state plans) or defined benefit plans (other than state plans) that:

An entity, other than an investor‑owned entity, that provides dividends, lower costs or other economic benefits directly to its owners, members or participants. For example, a mutual insurance company, a credit union and a co‑operative entity are all mutual entities.

The assets of a plan less liabilities other than the actuarial present value of promised retirement benefits.

The deficit or surplus, adjusted for any effects of limiting a net defined benefit asset to the asset ceiling.

The change during the period in the net defined benefit liability (asset) that arises from the passage of time.

The amount of the reporting entity’s interest in the net assets of that operation.

The gross investment in the lease discounted at the interest rate implicit in the lease.

The estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

Net realisable value refers to the net amount that an entity expects to realise from the sale of inventory in the ordinary course of business. Fair value reflects the amount for which the same inventory could be exchanged between knowledgeable and willing buyers and sellers in the marketplace. The former is an entity specific value; the latter is not. Net realisable value for inventories may not equal fair value less costs to sell.

See ‘events after the reporting period’.

Equity in a subsidiary not attributable, directly or indirectly, to a parent.

An asset that does not meet the definition of a current asset.

The risk that an entity will not fulfil an obligation. Non-performance risk includes, but may not be limited to, the entity’s own credit risk.

Notes contain information in addition to that presented in the statement of financial position, statement of comprehensive income, separate income statement (if presented), statement of changes in equity and statement of cash flows. Notes provide narrative descriptions or disaggregations of items presented in those statements and information about items that do not qualify for recognition in those statements.

An event that creates a legal or constructive obligation that results in an entity having no realistic alternative to settling that obligation.

Inputs that are developed using market data, such as publicly available information about actual events or transactions, and that reflect the assumptions that market participants would use when pricing the asset or liability.

Grouping an asset and liability that are recognised and measured as separate units of account into a single net amount in the statement of financial position.

A contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.

An entity’s statement of financial position at the date of transition to IFRSs.

The principal revenue producing activities of an entity and other activities that are not investing or financing activities.

A lease that does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset.

Payments to be made by a lessee to a lessor for the right to use an underlying asset during periods covered by an option to extend or terminate a lease that are not included in the lease term.

An operating segment is a component of an entity:

Financial instruments that give the holder the right to purchase ordinary shares.

A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (eg a forced liquidation or distress sale).

Holders of ordinary shares.

An equity instrument that is subordinate to all other classes of equity instruments.

Items of income and expense (including reclassification adjustments) that are not recognised in profit or loss as required or permitted by other IFRSs.

All employee benefits other than short‑term employee benefits, post‑employment benefits and termination benefits.

The risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

Uncertainty about the amount or timing of any inflow or outflow of economic benefits that will result from an asset or liability.

Property held (by the owner or by the lessee as a right‑of‑use asset) for use in the production or supply of goods or services or for administrative purposes.

Holders of instruments classified as equity.

In IFRS 3 owners is used broadly to include holders of equity interests of investor‑owned entities and owners or members of, or participants in, mutual entities.

An entity that controls one or more entities.

The members of a retirement benefit plan and others who are entitled to benefits under the plan.

An entity that participates in a joint arrangement, regardless of whether that entity has joint control of the arrangement.

A financial asset is past due when a counterparty has failed to make a payment when that payment was contractually due.

The change in the present value of the defined benefit obligation for employee service in prior periods, resulting from a plan amendment (the introduction or withdrawal of, or change to, a defined benefit plan) or a curtailment (a significant reduction by the entity in the number of employees covered by a plan).

A vesting condition that requires:

The period of achieving the performance target(s):

A performance target is defined by reference to:

A performance target might relate either to the performance of the entity as a whole or to some part of the entity (or part of the group), such as a division or an individual employee.

A promise in a contract with a customer to transfer to the customer either:

The total period of time that an asset is used to fulfil a contract with a customer (including any non-consecutive periods of time).

Comprise:

A party that has a right to compensation under an insurance contract if an insured event occurs.

Insurance contracts subject to similar risks and managed together.

Employee benefits (other than termination benefits and short‑term employee benefits) that are payable after the completion of employment.

Formal or informal arrangements under which an entity provides post‑employment benefits for one or more employees.

A financial instrument or other contract that may entitle its holder to ordinary shares.

Within an economic resource, a feature that already exists and that, in at least one circumstance, would produce for the entity economic benefits beyond those available to all other parties.

Existing rights that give the current ability to direct the relevant activities.

The currency in which the financial statements are presented.

The present value, without deducting any plan assets, of expected future payments required to settle the obligation resulting from employee service in the current and prior periods.

The basis of accounting that a first‑time adopter used immediately before adopting IFRSs.

Existing and potential investors, lenders and other creditors.

The market with the greatest volume and level of activity for the asset or liability.

Omissions from, and misstatements in, the entity’s financial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that:

Such errors include the effects of mathematical mistakes, mistakes in applying accounting policies, oversights or misinterpretations of facts, and fraud.

More likely than not.

The total of income less expenses, excluding the components of other comprehensive income.

Tangible items that:

Prospective application of a change in accounting policy and of recognising the effect of a change in an accounting estimate, respectively, are:

Rights designed to protect the interest of the party holding those rights without giving that party power over the entity to which those rights relate.

A liability of uncertain timing or amount.

The exercise of caution when making judgements under conditions of uncertainty. The exercise of prudence means that assets and income are not overstated and liabilities and expenses are not understated. Equally, the exercise of prudence does not allow for the understatement of assets or income or the overstatement of liabilities or expenses.

Purchased or originated financial asset(s) that are credit-impaired on initial recognition.

Contracts that give the holder the right to sell ordinary shares at a specified price for a given period.

A financial instrument that gives the holder the right to put the instrument back to the issuer for cash or another financial asset or is automatically put back to the issuer on the occurrence of an uncertain future event or the death or retirement of the instrument holder.

An asset that necessarily takes a substantial period of time to get ready for its intended use or sale.

An insurance policy issued by an insurer that is not a related party (as defined in IAS 24) of the reporting entity, if the proceeds of the policy:

An entity’s activities that are subject to rate regulation.

A framework for establishing the prices that can be charged to customers for goods or services and that framework is subject to oversight and/or approval by a rate regulator.

An authorised body that is empowered by statute or regulation to establish the rate or a range of rates that bind an entity. The rate regulator may be a third-party body or a related party of the entity, including the entity’s own governing board, if that body is required by statute or regulation to set rates both in the interest of the customers and to ensure the overall financial viability of the entity.

Amounts reclassified to profit or loss in the current period that were recognised in other comprehensive income in the current or previous periods.

The first day of the first reporting period following the change in business model that results in an entity reclassifying financial assets.

The higher of an asset’s (or cash generating unit’s) fair value less costs of disposal and its value in use.

The process of capturing for inclusion in the statement of financial position or the statement(s) of financial performance an item that meets the definition of one of the elements of financial statements—an asset, a liability, equity, income or expenses. Recognition involves depicting the item in one of those statements—either alone or in aggregation with other items—in words and by a monetary amount, and including that amount in one or more totals in that statement.

A purchase or sale of a financial asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the marketplace concerned.

The balance of any expense (or income) account that would not be recognised as an asset or a liability in accordance with other Standards, but that qualifies for deferral because it is included, or is expected to be included, by the rate regulator in establishing the rate(s) that can be charged to customers.

An insurance contract issued by one entity (the reinsurer) to compensate another entity for claims arising from one or more insurance contracts issued by that other entity (underlying contracts).

A person or entity that is related to the entity that is preparing its financial statements (in IAS 24 referred to as the ‘reporting entity’).

A transfer of resources, services or obligations between a reporting entity and a related party, regardless of whether a price is charged.

For the purpose of IFRS 10, relevant activities are activities of the investee that significantly affect the investee’s returns.

A feature that provides for an automatic grant of additional share options whenever the option holder exercises previously granted options using the entity’s shares, rather than cash, to satisfy the exercise price.

A new share option granted when a share is used to satisfy the exercise price of a previous share option.

Comprises:

Rights to deprive the decision maker of its decision‑making authority.

An operating segment for which IFRS 8 requires information to be disclosed.

An entity that is required, or chooses, to prepare general purpose financial statements.

Original and planned investigation undertaken with the prospect of gaining new scientific or technical knowledge and understanding.

A guarantee made to a lessor by a party unrelated to the lessor that the value (or part of the value) of an underlying asset at the end of a lease will be at least a specified amount.

The estimated amount that an entity would currently obtain from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

A programme that is planned and controlled by management, and materially changes either:

Arrangements whereby an entity provides benefits for its employees on or after termination of service (either in the form of an annual income or as a lump sum) when such benefits, or the employer’s contributions towards them, can be determined or estimated in advance of retirement from the provisions of a document or from the entity’s practices. (See also ‘post‑employment benefit plans’.)

Applying a new accounting policy to transactions, other events and conditions as if that policy had always been applied.

Correcting the recognition, measurement and disclosure of amounts of elements of financial statements as if a prior period error had never occurred.

Interest, dividends and other revenue derived from the plan assets, together with realised and unrealised gains or losses on the plan assets, less:

Income arising in the course of an entity’s ordinary activities.

An asset that represents a lessee’s right to use an underlying asset for the lease term.

The compensation an entity requires for bearing the uncertainty about the amount and timing of the cash flows that arises from non-financial risk as the entity fulfils insurance contracts.

Compensation sought by risk-averse market participants for bearing the uncertainty inherent in the cash flows of an asset or a liability. Also referred to as a ‘risk adjustment’.

Those presented by an entity in which the entity could elect, subject to the requirements in IAS 27, to account for its investments in subsidiaries, joint ventures and associates either at cost, in accordance with IFRS 9 Financial Instruments, or using the equity method as described in IAS 28 Investments in Associates and Joint Ventures.

A separately identifiable financial structure, including separate legal entities or entities recognised by statue, regardless of whether those entities have a legal personality.

A vesting condition that requires the counterparty to complete a specified period of service during which services are provided to the entity. If the counterparty, regardless of the reason, ceases to provide service during the vesting period, it has failed to satisfy the condition. A service condition does not require a performance target to be met.

Comprises:

A transaction that eliminates all further legal or constructive obligation for part or all of the benefits provided under a defined benefit plan, other than a payment of benefits to, or on behalf of, employees that is set out in the terms of the plan and included in the actuarial assumptions.

An agreement between the entity or another group5 entity or any shareholder of the group entity and another party (including an employee) that entitles the other party to receive 

provided the specified vesting conditions, if any, are met.

A transaction in which the entity

A contract that gives the holder the right, but not the obligation, to subscribe to the entity’s shares at a fixed or determinable price for a specific period of time.

Employee benefits (other than termination benefits) that are expected to be settled wholly before twelve months after the end of the annual reporting period in which the employees render the related service.

A lease that, at the commencement date, has a lease term of 12 months or less. A lease that contains a purchase option is not a short-term lease.

The power to participate in the financial and operating policy decisions of the investee but is not control or joint control of those policies.

The exchange rate for immediate delivery.

The price at which an entity would sell a promised good or service separately to a customer.

An entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements.

Paragraphs B22⁠–⁠B24 of IFRS 12 provide further information about structured entities.

A transaction for which an underlying asset is re-leased by a lessee (‘intermediate lessor’) to a third party, and the lease (‘head lease’) between the head lessor and lessee remains in effect.

An entity that is controlled by another entity.

The amount attributed to that asset or liability for tax purposes.

The aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Tax expense (tax income) comprises current tax expense (current tax income) and deferred tax expense (deferred tax income).

The profit (loss) for a period, determined in accordance with the rules established by the taxation authorities, upon which income taxes are payable (recoverable).

Temporary differences that will result in taxable amounts in determining taxable profit (tax loss) of future periods when the carrying amount of the asset or liability is recovered or settled.

Differences between the carrying amount of an asset or liability in the statement of financial position and its tax base. Temporary differences may be either:

Employee benefits provided in exchange for the termination of an employee’s employment as a result of either:

The change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners.

The costs to sell an asset or transfer a liability in the principal (or most advantageous) market for the asset or liability that are directly attributable to the disposal of the asset or the transfer of the liability and meet both of the following criteria:

Incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial liability (see paragraph B5.4.8 of IFRS 9). An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of the financial instrument.

The amount of consideration to which an entity expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties.

The costs that would be incurred to transport an asset from its current location to its principal (or most advantageous) market.

Financial statements of a reporting entity that is the parent alone.

An asset that is the subject of a lease, for which the right to use that asset has been provided by a lessor to a lessee.

Items that determine some of the amounts payable to a policyholder. Underlying items can comprise any items; for example, a reference portfolio of assets, the net assets of the entity, or a specified subset of the net assets of the entity.

The difference between:

That portion of the residual value of the underlying asset, the realisation of which by a lessor is not assured or is guaranteed solely by a party related to the lessor.

The level at which an asset or a liability is aggregated or disaggregated in an IFRS for recognition purposes.

The right or the group of rights, the obligation or the group of obligations, or the group of rights and obligations, to which recognition criteria and measurement concepts are applied.

Inputs for which market data are not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability.

Financial information that is useful to primary users of general purpose financial reports in making decisions relating to providing resources to the reporting entity. To be useful, financial information must be relevant and faithfully represent what it purports to represent.

Either:

See primary users (of general purpose financial reports).

The present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

The present value of the future cash flows expected to be derived from an asset or cash generating unit.

The portion of payments made by a lessee to a lessor for the right to use an underlying asset during the lease term that varies because of changes in facts or circumstances occurring after the commencement date, other than the passage of time.

To become an entitlement. Under a share‑based payment arrangement, a counterparty’s right to receive cash, other assets or equity instruments of the entity vests when the counterparty’s entitlement is no longer conditional on the satisfaction of any vesting conditions.

Benefits, the rights to which, under the conditions of a retirement benefit plan, are not conditional on continued employment.

A condition that determines whether the entity receives the services that entitle the counterparty to receive cash, other assets or equity instruments of the entity, under a share‑based payment arrangement. A vesting condition is either a service condition or a performance condition.

The period during which all the specified vesting conditions of a share‑based payment arrangement are to be satisfied.

The number of ordinary shares outstanding at the beginning of the period, adjusted by the number of ordinary shares bought back or issued during the period multiplied by a time weighting factor.